We use administrative records on the incomes of more than 40 million children and their parents to describe three features of intergenerational mobility in the United States. First, we characterize the joint distribution of parent and child income at the national level. The conditional expectation of child income given parent income is linear in percentile ranks. On average, a 10 percentile increase in parent income is associated with a 3.4 percentile increase in a child's income. Second, intergenerational mobility varies substantially across areas within the U.S. For example, the probability that a child reaches the top quintile of the national income distribution starting from a family in the bottom quintile is 4.4% in Charlotte but 12.9% in San Jose. Third, we explore the factors correlated with upward mobility. High mobility areas have (1) less residential segregation, (2) less income inequality, (3) better primary schools, (4) greater social capital, and (5) greater family stability. While our descriptive analysis does not identify the causal mechanisms that determine upward mobility, the publicly available statistics on intergenerational mobility developed here can facilitate research on such mechanisms. The United States is often hailed as the "land of opportunity," a society in which a child's chances of success depend little on his family background. Is this reputation warranted? We show that this question does not have a clear answer because there is substantial variation in intergenerational mobility across areas within the U.S. The U.S. is better described as a collection of societies, some of which are "lands of opportunity" with high rates of mobility across generations, and others in which few children escape poverty. We characterize intergenerational mobility using information from de-identified federal income tax records, which provide data on the incomes of more than 40 million children and their parents between 1996 and 2012. We organize our analysis into three parts. In the first part, we present new statistics on intergenerational mobility in the U.S. as a whole. In our baseline analysis, we focus on U.S. citizens in the 1980-1982 birth cohorts-the oldest children in our data for whom we can reliably identify parents based on information on dependent claiming. We measure these children's income as mean total family income in 2011 and 2012, when they are approximately 30 years old. We measure their parents' income as mean family income between 1996 and 2000, when the children are between the ages of 15 and 20. 1 Following the prior literature (e.g., Solon 1999), we begin by estimating the intergenerational elasticity of income (IGE) by regressing log child income on log parent income. Unfortunately, we find that this canonical log-log specification yields very unstable estimates of mobility because the relationship between log child income and log parent income is non-linear and the estimates are sensitive to the treatment of children with zero or very small incomes. When restricting the samp...

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The Moving to Opportunity (MTO) experiment offered randomly selected families living in highpoverty housing projects housing vouchers to move to lower-poverty neighborhoods. We present new evidence on the impacts of MTO on children's long-term outcomes using administrative data from tax returns. We find that moving to a lower-poverty neighborhood significantly improves college attendance rates and earnings for children who were young (below age 13) when their families moved. These children also live in better neighborhoods themselves as adults and are less likely to become single parents. The treatment effects are substantial: children whose families take up an experimental voucher to move to a lower-poverty area when they are less than 13 years old have an annual income that is $3,477 (31%) higher on average relative to a mean of $11,270 in the control group in their mid-twenties. In contrast, the same moves have, if anything, negative long-term impacts on children who are more than 13 years old when their families move, perhaps because of the disruption effects of moving to a very different environment. The gains from moving fall with the age when children move, consistent with recent evidence that the duration of exposure to a better environment during childhood is a key determinant of an individual's long-term outcomes. The findings imply that offering vouchers to move to lower-poverty neighborhoods to families with young children who are living in highpoverty housing projects may reduce the intergenerational persistence of poverty and ultimately generate positive returns for taxpayers. * The opinions expressed in this paper are those of the authors alone and do not necessarily reflect the views of the Internal Revenue Service or the U.S. Treasury Department. This work is a component of a larger project examining the effects of tax expenditures on the budget deficit and economic activity. All results based on tax data in this paper are constructed using statistics originally reported in the SOI Working Paper "The Economic Impacts of Tax Expenditures: Evidence from Spatial Variation across the U.S.," approved under IRS contract TIRNO-12-P-00374 and presented at the Office of Tax Analysis on November 3, 2014. MTO participant data are highly confidential. HUD allowed the authors special access to the experimental data under Data License DL14MA001, approved March 28, 2014. We thank Joshua Angrist, Jeffrey Kling, Jeffrey Liebman, Jens Ludwig, anonymous referees, and numerous seminar participants for helpful comments and discussions. We are very grateful to Ray Yun Gou, Lisa Sanbonmatsu, and Matt Sciandra for help with the Moving to Opportunity data. Sarah Abraham, Alex Bell, Augustin Bergeron, Jamie Fogel, Nikolaus Hildebrand, Alex Olssen, and Benjamin Scuderi provided outstanding research assistance. This research was funded by the National Science Foundation, NIA Grant R01 AG031259, the Lab for Economic Applications and Policy at Harvard, and Laura and John Arnold Foundation.Individuals who live in high...

In Project STAR, 11,571 students in Tennessee and their teachers were randomly assigned to classrooms within their schools from kindergarten to third grade. This paper evaluates the long-term impacts of STAR by linking the experimental data to administrative records. We first demonstrate that kindergarten test scores are highly correlated with outcomes such as earnings at age 27, college attendance, home ownership, and retirement savings. We then document four sets of experimental impacts. First, students in small classes are significantly more likely to attend college and exhibit improvements on other outcomes. Class size does not have a significant effect on earnings at age 27, but this effect is imprecisely estimated. Second, students who had a more experienced teacher in kindergarten have higher earnings. Third, an analysis of variance reveals significant classroom effects on earnings. Students who were randomly assigned to higher quality classrooms in grades K-3 -as measured by classmates' end-of-class test scores -have higher earnings, college attendance rates, and other outcomes. Finally, the effects of class quality fade out on test scores in later grades but gains in non-cognitive measures persist.